i'm toure. welcome to "the cycle," my friends. congress could be ready to compromise with the president? >> you saw it first here on friday. america's top spy caught in a secret affaiaffair. i have the irony. i spy there's more to this story. >> petraeus or no petraeus,

someone is facing tough questions this week during congressional hearings on the benghazi aattacks. >> i'm krystal ball. big city mayors are getting defensive about looming cuts. can we slash spending without slashing thousands of hometown jobs? i dove into the republican "twilight" zone and nearly lost my mind. the real truth on "the cycle," monday, november 12th. we kick off this week on "the cycle" with no upcoming election and no massive impending storm to warn you about. let's take a moment to enjoy the calm. >> nice. >> all right, enough of that. we enjoyed the peace for about as long as washington did. there's an unfolding story of the resignation of cia director david petraeus that broke on "the cycle" on monday. when the lame duck congress waddling in tomorrow, there's aa

promise of a con sill to her tone. steve, can you fall off a sloef? >> it feels really good, exactly. >> they start to tackle the nation's debt. there's fear of sbimgtsment cuts and, of course, tax reform. the president is packing a he schedule with high profile meetings to try and get something done. tomorrow labor leaders, wednesday business leaders and corporate executives, and friday congress aal leaders from both sides of the aisle. we start with rob cox at reuters breaking news. rob, do you expect compromise or continuing to fight? >> well, i do expect compromise, but remember, the fiscal cliff is one artificial construct cooked up by the congress and the president to basically get us to think about a much bigger problem, which is what you pointed out. entitlement reform and tax reform and all the big issues and putting america into the

accounts. the problem is the president -- i mean, you know, frankly has all the leverage here. so he doesn't need to compromise that much to get half, if not three-quarters of what he wants. >> i think the president is feeling that he has the leverage. one thing we've seen is he's going to take this message to the people. it seems to me he's learned a little bit from the fights he had before, leaving it all in washington giving the republicans a lot of leverage. making it a national fight and bringing in the voters makes it something with more leverage. did he learn? is he going to play this fight out differently? >> if there's anything he learned from the election but not just the national election but where you had the referendum where people were very, very happy by and large to let the rich pay more. i think you're going to see the president is going to dig in his heels on this issue about the wealthy paying more, even though actually that's not going to solve the long-term issue about america's fiscal problems. i think it's a messaging issue.

the president let's face it, over the fiscal cliff and the president and democrats played it up the right way, which is it was the republicans that refused to tax millionaires, i mean, i don't see how the democrats lose on that one. i see how the republicans lose big and big-time. >> rob, i mean, you mentioned that the president has some rench, dut doesn't he also have a little responsibility here? i think the complaint has been that he's sort of been a little too happy to let congress duke this out and hasn't really been a leader on this issue. does he have to come to the table in addition to democrats and republicans and bring some leadership to this issue as well? >> yes, he does. absolutely. one of the great failings many argue of the first term is he didn't deal with boles simpson and didn't put his weight behind it. he didn't show leadership on that front. he can still do this. we can go over the fiscal cliff. now i'll rescue it and come back and cut a deal. >> you are speaking steve's language. >> i hope that's not what happens, because, you know, the

grading agency, the markets, people will freak out and temperature won't be good. it will show the world we're dysfunctional and it's all about gridlock and partisanship. that is bad for america and all of us. i think the republicans have to realize the position of strength that the president is starting from here. >> rob, it sounds like they're starting to recognize it. you had the interview in the "wall street journal" this weekend, where mcconnell said he's willing to pay the ransom. meaning he's willing to sign off on higher taxes for the wealthy, which obama is demanding. the democrats have the leverage and the republicans recognize that and the republicans will compromise in some way on the tax issue. my issue and question is this. there was a civil war in the republican party the last time republican members of congress voted for a atax hike in 1990 under george bush sr. is this a situation for the next six weeks republican leaders pretend there's no deal coming and pretend they fight it tooth and nail. we get to december 29th and

dictator obama forced this on us. is that the game mcconnell and boehner play here? >> i think they know that game won't play well. they have to play it. everyone has to take a sacrifice here, and when you do the numbers with america's finances to keep the entitlements entact, if slightly different from today, to keep social security intact and get the economy back and growing, everyone has to take a little bit of a hit, whether it's the private equity guy with his carried interest exclusion and the $750,000 home morn tax deduction, which is completely absurd. that doesn't help the middle class. they all have to happen. if everyone is -- you saw bob corker last week or over the weekend. there are a lot of sensible people out there. i think sensible minds will prevail. this is just a fiscal cliff. it pushes it off to july 4th to be patriotic with an agreement and framework to work towards a big deal. it is only this artificial

construct we're talking about now. what we need to get for everybody to be happy and the markets to be happy and the chinese and the japanese and the bonds and everybody else to be happy is we need to know that actually america's finances are on solid footing, will be on solid footing. medicare is there in some form. social security is there in some form. that's what everyone has to work towards. the lift that people will have in terms of optimism, i think, would be great for the country and for the economy. >> so, rob, the realist stickin point is revenue. where would a deal come from? i actually want to take the politics out of this. let's pretend such a proposal would be feasible. one thing floated is instead of looking so much at the income tax rates to actually impose a carbon tax. what's been proposed is a $20 per ton carbon tax that would lower the deficit or cut the debt by 50% in 10 years and discouraging fossil fuel

consumption which is something good. the con is it's not a progressive tax. if you don't offset that by strengthening or keeping from where they are, like medicaid and the welfare system, but i wanted your thought on whether that's feasible economically and whether it's good for the country? >> yeah. both sides -- there are a lot of people on both sides that have argued for a carbon tax and a gas tax, too, for example. that's highly aggressive. if you're a plummer driving around you pay more if you're an investment banker that doesn't drive around because you maybe you take a plane. it's totally do-able and makes sense. it's a market mechanism. if you tax the kinds of behaviors you want to discourage, which is what we do with cigarettes, with alcohol, you know, we don't do it with debt, by the way. we encourage taking on debt. if you were to actually create something that worked where you could, i don't know, give the

people the most hit, again, the people who travel who are hard-hit as it is, it could work. you know, there are all the sorts of problems with a lot of smokestack industries, and we have a real problem with manufacture inning this country. there's some sort of reckoning with that. it makes sense. everything has to be put on the table. my worry is everyone focuses on the fiscal cliff and not the big thing that it's designed to address. >> rob cox, thank you very much. >> pleasure. >> up next, the media's new shiny object, the scandal involving sex and spies. that leads us to ask the crucial question, why would a man risk everything for sex? we'll tackle that next as we roll on for monday, november 12th.

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on friday anld ya mitchell broet the story that had us all talking p weekend. david petraeus resigned over an extra-marital affair with his buy grafr, paula broadweliograp. kelley is shown with petraeus and their spouses. from there the fbi's investigation uncovered sexually explicit e-mails between broadwell and petraeus. they set up e-mails with fake names. when the fbi questioned petraeus and broadwell, both came clean about the relationship in october. we're told that the president didn't learn about the investigation until last thursday.

attorney general eric holder and two house republicans including eric cantor knew weeks before, perhaps more curious, how could the cia, the agency that knows all, not have known about this? let's go to the table. i actually think that the biggest questions are for the fbi. they did not inform the senate intelligence committee, who is supposed to be informed of any fbi investigations that potentially involve national security. they were not informed until friday basically right before all of us found out. so i kind of think the biggest questions here are for the fbi and their handling of the investigation, but really the question on everybody's mind is g mail, really? g mail, head of the cia. all right. >> i have to get out of the way, at least now that there's sex involved i know we'll be talking about libya, which is great. my main question is, what the hell is wrong with you people? i cannot -- >> you mean me? >> yes, men. not personally, obviously, but i

don't understand why it is always since the beginning of time -- just ask adam and eve. why it is so easy to get a man to completely abandon principles, success, family, reputation? i mean, i don't get it. david petraeus is perhaps one of the most disciplined men in the history of the world based on his background and leads a spy agency, and a chick bats her eyes at him and he throws everything away. it boggles my mind. hitler whose main concern was world domination still found time for a mistress. keep your eye on the ball, guys. >> i think george clinton, great philosopher answered this question. why must i chase the cat, be like that? nothing but the dog in me. that's who we are. >> it is so embarrassing.

>> i agree. i agree. men lose kingdoms and fortunes. >> it's not right. >> for sex. >> you become powerful because you're ambitious, but that doesn't mean wanting to dominate the men around you. it means having the spoils. >> the spoils? already. >> i saw this documentary about lions. one male lion comes in and takes over the pride and kicks out the sons of the old "lion king" and has sex with all the new women because that's part of the whole thing of being the dominant male. that's what you do. >> what you know bothered me and now it looks like paula broadwe will sent threatening e-mails, which doesn't look good. the initial instant reaction from people was, oh, how tragic that this great man has been led astray by is this wanton floozie, right? >> but this hussey. >> hussey. this is where people want to go with this. he's a victim, poor thing. can't help himself.

>> king herod was a victim too. she wiggled his hips at him and got john the baptist's head on a platter. >> it's not fair. >> women cheat as well. this is not to excuse female behavior, but you guys are so easy. it's amazing. >> when do you see a powerful woman gain power and lose it on a sex scandal? when does that happen? >> when is the last time we had a female senator, congresswoman derailed by a sex scandal? >> is it because women are so seldom in power, once they get there they work extra hard to keep it? >> there's too busy. >> busy? >> there's jerngender norms tha along with it, too. women are attracted to power. women don't respond that same way in power. >> neve so much to lose. >> i notice steve has been pretty quiet over there. >> apologize for yourself, steve. >> look at the scrutiny we're

applying to the great failing of david petraeus. look, i get the issue here. if you're a cia director. the agent is sdplised so the agency has to go to that. i understand that. i also say, he's getting more scrutiny over this, over this personal failure, a failure in his personal life than over any decision he's made as a general, any decision he made as the commander in iraq and afghanistan, any action he took as the head of the cia. i think it's -- we have this tendency to just automatically venerate, the four stars and uniform, all the combination. there's been great military leaders in american history and the contributions to the military to the america we know today are invaluable. but i think there's been this suspension of critical thought and critical coverage of david petraeus going back at least half a decade when we decided he was the hero of the iraq surge. we didn't look closely at what happened with the surge. we said we'll take this surge

and aapppply that to afghanista. i don't think it worked that well. petraeus himself seemed to recognize this,s why why air strikes are increasing and we start to use drones. the whole idea of the counterinsurgency is the local communities sort of make friends with local communities. now we use drone strikes and alienating all the people. david petraeus just became a symbol of military greatness in this country without anybody looking closely at his record. >> and his e-mails. >> wow, what an awful guy. he did this. i'm sure a lousy husband and all that. i wish we had thought a little bit more about some of these actions and the decisions he's make. >> there's a sense the civilian should trust the brass and follow the top military leadership. i wonder if we feel less comfortable questioning generals and their decision making because so few, such a small percentage of the population actually servesmilitary.

it's from a smaller pool. we feel we don't have a right to criticize because we haven't served. >> now that we know that he's a cad, i feel free to criticize. >> someone this segues into our next conversation. on this veterans day the issue is defense. admiral joseph stack joins us straight ahead. into their work,

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oh, what a beautiful monday. the knicks are undefeated. the lakers are in disarray. kornacki's beloved kansas state is is number one in the nation and we're at the start of another four years of president obama in the white house. he has a long list of to dos, so this week we'll examine the issues americans care about the most. today the issue is defense. we start with the military,

because its budget will be slashed if the automatic cuts are engaged at the beginning of the year. more than $100 billion next year alone. we're stuck between one sides. one says national security is priceless and another telling us we can't continue at this level of spending. here to help us is admiral joseph stack. how are you? >> it's good to be with you. thanks. >> do you think it is possible that we can actually have a defense that runs efficiently, that is the best in the world, that protects us, that maintains global security without doing it so expensively? can we be more cost-efficient instead of throwing millions and billions at it every year? >> there's not aa question inmy mind we can. you just mentioned very few are willing to question our present military, question our present military industrial congressional complex. let me give you an example, which i mentioned before. an aircraft carrier today can strike in 24 hours nine times

the targets that it can do just 15 years ago. that means ten aircraft carriers today are worth 90 15 years ago. they're the same hauls. china has 80 submarines and we have 50 at $2 billion a pop. do we want to go one on one to find each other like "hunt for red october," or change into a military that puts sensors all over the south and east china sea. when it moves to the water it makes a magnetic anomaly. have an unmanned air vehicle drop a torpedo on it. that's the type of change that has to occur. in fact, president obama has established a four-star general to be in charge of what's known as a psycyberspace command. we have a much more effective and cost-efficient military of the future based upon knowledge,

not capacity. >> okay. so let's put this in dollar terms because we have this issue of the gradual fiscal slope. the automatic defense cuts triggered if there's no deal reached. i'm assuming there's a compromise here in the end, but i i guess the question is what's the recent reduction in spending over the next ten years for the pentagon? what's a reasonable part of the deal for na? >> i think a reasonable one is actually about the amount in the sequestration. that's a little bit less than what the boles-simpson commission had. they had about $750 billion. if you take a salmi slice cut like the sequestration bill does, you will harm the military. if you're able to say, wait a moment, maybe we don't need quite as many submarines and we need a sensor system and you can change how we are to the systems we're procuring, then you're

able to do this decrease in spending if you put it in the right capability. that's the enormous change that we have to have in our military. look, the navy dpom natuominate commons of the seas and the air force dominates the commons of the air. we have to dominate the commons of cyberspace. look what we did to iran. when we take down centrifuges that enrich the terrain yum. by one virus we stymied them for a while. imagine if we read everything out there and the other side knows that we can do that kind of damage. that is what is very difficult to bring about. i can tell you that's what i proposed as a three-star admiral. i'm not saying we didn't need 316 ships. the plan said 250 ships if you make this type of change and the investment of cyberspace, knowledge-based warfare. >> everyone agrees that our military needs to get smarter

and leaner, and that defense cannot be a psych red cow but i want to switch gears and talk about jobs. the obama administration repeatedly asked defense contractor not to comply with t with it and warn they might be laid off in advance of cuts and of course recently boeing laid off 30% of its management force and other companies are expected to do the same. do you think the president played politics with these job cuts? >> i don't know if he played politics, but i know this. if you understand defense appropriations that that $600 billion in the sequestration, most of it is in research and development and procurement. only 15% of any procurement contract or research and development is spent in the first year. so the immediate cuts from this don't have very much impact. second, when people talk about jobs, the defense and aerospace

association said there would be a million jobs lost if that $600 billion went into effect. you know what? s.e., there's only 3.5 million bornste jobs in defense in the aerospace industry, that including 757s. they're going to lose 33% in one year of their entire work force because of a 10% cut in defense? weren't a job welfare program. if we're doing that and then sending our men and women overseas in ten years with the wrong type of equipment, we've done something wrong. politi politics needs the right type of effective military for the future, and i think we're a little behind of getting to because congress, quite frankly, doesn't want to cut a ship depot in its district. >> yeah. in the district that i ran for, including newport news, so i saw that up close and personal. admiral, i wanted to go back to what you were saying about dominating cyberspace and cyber warfare. there is a danger there when

we're sending viruses we spend a message worldwide that type of warfare is okay, and are we opening ourselves up to be victims of similar attacks? >> it's a wonderful question. the issue is you know as well as i do by reading the unclassified newspapers in the last two or three years, china has been inside lockheed martin and the defense industries and inside the pentagon trying to read our stuff. this is the new domain of warfare. by not doing it, just means that you leave that field of battle to the other side. if there's one thing americans are great at, it's that type of knowledge-based entrepreneurialship. it's gates, steve jobs. this is our homeland. we should take that and read everybody's mail around the world. i understand the concern, but the number one concern for the president of the united states or any congressional member is the security of the united states. you know what? we can do it. like we did with iran, without having to take us to a kinetic

war. this is an immense change, and quite frankly when i recommended 56 submarines and only say 35, if we moved into this sense of war fare, one of the connecticut senators three years later came into my district to help me run for my first race. as we sat down, because where submarines are built if connecticut, joe, i still remember you. you're the admiral that wanted to cut my submarine fleet. this is a hard change to bring about, but it's critical. you can see how we got bin laden and the centrifuges. it's the wave of the future. >> what do you think about the cia that petraeus led? what is its legacy? >> i think general petraeus without any question is one of the fine estrogens st generals generation. he stuck his head up and established a new counterinsurgency type of warfare. all that said, i would take most out of this what general petraeus showed us by handing in

his resignation. that is, he learned what real leadership is all about in the military. that you are given as a leader great responsibility, and with that goes authority. with them both goes accountability. that's what's missing too much in our political life, our political leaders of today. if people who follow a leader believe that their above accountability, they luce trust in that leader. if your leader loses the confidence of those trying to follow him, then a purposeful mission soon disintegrates into chaos. if anybody needs to take a lesson from this, it's our political leaders too seldom willing to be responsible but not held accountable. the president was right to accept this resignation. accountability is cruel but is absolutely what is most needed in our nation. >> quickly, is this the last wee see of petraeus in american public life? >> i hope not, but i can't say. i didn't know him that well, but

i have great respect for how he stood up and tried to do things right from counterinsurgency to take over the cia. when you're in the military, you don't separate personal standards from professional standards. none of us are perfect, but that i think in this case he did the right thing. i'd like to see a fine man continue. >> all right, admiral. thank you very much. >> thank you. coming up, the gop embracing cooperation instead of on obstruction? steve's noticing promising signs. i'll believe it when i see it. two years ago, the people of bp made a commitment to the gulf.

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look, i think the fever will have broken. you have this tea party controlling their party. i've said this to you before. we need a republican party. we need leaders that kr control their party, and i think you're

going to see the fever break. >> that was vice president joe biden predicts that he and president obama won another term we'd see a more cooperative gop opposition. a lot of people scoffed at the idea, but since the election we have seen some surprising signs that biden may be right. will the president break through the washington gridlock this time around? let's backspin on that. what i've seen since the election is there's a big tonal shift on immigration from republicans. lindsey graham yesterday said he's now going to bring back the immigration reform bill with chuck schumer and they're going to work on them. sean hannity is saying let's do comprehensive immigration reform. more specifically on the issue of taxes. it's been more than two decades. bill crystal said yesterday, yeah, it's time to do that. mitch mcconnell actually saying he was basically open to it. i'm not taking this as wow, the republicans have reinvented

themselves and this is a nuj republican party and a huge change for the future. this is an aaffirmation about something about how the system is supposed to work. this is why i thought was most important in this election was what were the tactics of the republican party the last four years. their opposition party tactics of total obstruction to politically destroying the president of the other party. were those tactics validated. if they won power back by doing that, it will normally behavior by the opposition party our system is not billed for. the behavior of the republican for the last four years works in a british system where the only function of the opposition party is to oppose and obstruct any way they can. they just oppose. here the opposition party has a real meaningful role. they have to govern in some way. what i see from republicans are signs that they are going to return at least in the near term to being an actually functioning opposition party in a way that works and it's encouraging.

>> we've talked about object straukz and saw the republicans being extortionists over the last few years. it might be in the past, might be more opposition rather than obstruction. we like opposition that makes the bills better. obstruction is meant to destroy a government and the party anti-government that wants smaller government works towards their whole strategy. when you see boehner calling the caucus and say, hey, let's aavoid the nasty showdowns. that's saying let's not be hostage takers. you see obama learning how to deal with the caucus. let's extend the middle class tax cuts, right now, let's do it. he puts them in a bad position and making it look like, look, middle class, they are not giving you what you need. so learning how to work with them, learning that we have to have some compromise, i see some tea leaves that we may have a better next couple of years. we'll see. >> it will be interesting, if a deal is struck. i don't think it will nearly as

good as for republicans as the deal that the president offered them. the grand deal that had been offered before. you know, in some ways i actually think the problem for republicans and for conservatives is that a lot of their ideas and principles have actually won. you know, since ronald reagan we no longer have 70% tax rates on the highest income earners. nobody is arguing for that. we're arguing to go back to 39.6%. on health care reform, the president's health care reform was basically a conservative idea put into the national spotlight by democrats and passed by democrats. education reform. even cap and trade is really a republican approach to solving environmental problems. we no longer have anyone saying we don't need to balance the budget. in a lot of ways these conservative ideas have won the day. so republicans are in a place where they moved further and further to the right as the democratic party has amoved further and further to the

right. now they're out in the mainstream, and in order to have a meaningful, stark contrast with democrats, they've gone to such a far right place that the american people just aren't comfortable with what they propose. >> i'm encouraged by some of the language i heard coming from some folks on the right. there's still people in conservative circles who are saying we can't compromise our values. you're right, but that's not one in the same. you don't have to compromise your values to come to the table with an open mind. i hope the democrats do the same thing. if they make this election about punishing republicans, i don't think that's the kind of inspiring message voters want to see. i think both sides acted like children the past four years, and i think voters said with this election, get back to work. you have a job to do. stop bickering. stop trying to score points and get re-elected. stop trying to oust the other guy. just get work done. i think that conservatives can do that while still maintaining

some of their core principles. >> they might be learning a lesson conservatives learned in 1996 when a democratic president was re-elected two years after a republican landslide. you saw a second term with bill clinton ton, they cooped and impeached him, too. >> up next, this is one thing you'll see only on "the cycle." developments in the search for bigfoot. yes, i said bigfoot. no, no, no. >> we just got it. dude, i think they're here. >> something's moving down below. y-made pasta. you could also cut corners by making it without 100% real cheddar cheese. but then...it wouldn't be stouffer's mac & cheese. just one of over 70 satisfying recipes for one from stouffer's. gives you a low national plan premium... so you can focus on what really matters.

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when you see a creature walking through the clearing and turning nonsha lantly toward the camera before disappearing in the trees. it may be the most famous alleged bigfoot sighting but it's hardly the only one. there are thousands every year and recorded siting are all over the world and every state in the country except hawaii. a full 30% of americans believe bigfoot exists. they're eager to prove them right. the fascination in all things sass squash reached new highs with the famed and elusive creature. our guest is the star of the wildly popular animal planet show optimistically named

"finding bigfoot" that had its season premiere last night. take a look. >> to the northeast. >> we'll be listening. >> all right. >> joining us now is bigfoot researcher bobo. we're hooked the first time elsd, dude, that sounds squashy. welcome. >> i brought you a gift, s.e. heard you're a squash fan. >> that's amazing. it's like the one you're wearing. i brought my t-shirt, dude that sounds squashy, which you signed. how did you become a squatch watcher? >> when i was 5 i saw that film, and it looked real to them. i had seen planet of the apes.

that was filmed near the same year of the first planet of the apes movie. they couldn't duplicate that with the best hollywood budget. i grew up in l.a. and moved to northern california and got a job logging and started to look around. eventually tv people came up there, and i was working behind the camera. the site was hard to find. dude, you should be in front of the camera. >> how many encounterers have had? >> encounters? dozens. like when they're around, you can hear them and smell them. i haven't smelled that much, but i've seen them a handful of times. i had one daylight sighting, i saw half lean out behind the tree for a half second and it was gone. >> if you're like me, i put myself in the skeptic category, although i want to believe and i would love to see evidence myself of bigfoot. i'm into it.

but on the one hand you think, god, there's so many sightings and so many different continents and countries and states. how can all of those people be wrong or lying? on the other hand, where's the body? i want to see the body. what is your most conclusive evidence to me for why sasquatch exists? >> there's a big dna study going on right now. they mapped the genome, and there's other labs confirming it, like oxford university is involved with it now. that's the big step. there's the data from the footprint. there's thousands of foot in the cast. you can't fake it. there's hair samples, like the morphology of the hair matches. it's an unknown primate discovered in north america. there's lots of that. since 2010 they have the ability to extract dna. it's opening up new realms.

we have it in the new season, we have some of that. >> great. >> help me understand here. we have bigfoot, sasquatch, yedi. what's the breakdown here? >> we were wondering the same thing. we went to australia and sumatra coming up this season. when and when we got to australia what we found out, the way they act is the same as what we experience in north america. we got audio recordings down ther there. >> you actually did include -- you have a resident skeptic basically who kind of provides that vupt. i think we have a clip of it. >> she's wrong. >> what's the best piece of evidence for the existence of big foot outside of the patterson film? that's really difficult to say because anecdotal evidence alone doesn't hold water for me. we had anecdotal evidence for centuries for mermaids, for unicor

unicorns, for all different kind of animals we know are not real. >> i guess what i wonder, she's expressing a few that i think a lot of people, academics who think about this, might express. how much trouble have you had getting sort of intellectuals and academics to take this seriously and take on this challenge with you? >> those comparisons are just ridiculous. nobody is reporting seeing unicorns in the woods. you don't have police officers -- >> my daughter might report one of those. >> right. everyone knew what unicorns were, nobody knew what a sasquatch was. the comparisons just don't stand up. there's no film of any of those other things. the patterson film is the best. the more technology put into it with new developments with 3-d, it stands up better and better. >> do me a favor before we let you go and can you perform for us a squatch call?

>> i can do one. >> great. >> just -- >> just go right after it. thank you so much. that was great. i'll pay for that later in the building i'm sure. thank you for joining us at the table. up next, toure turns into rod when he comes back to the table. >> thank you. >> thank you. you won't find a "home rule" on every corner, a "stag provisions" down every block, or a "hugh and crye" in every town. these are the small businesses of america, and all across the nation they're getting ready for their day. hundreds of thousands of small businesses are preparing for november 24, a day to open doors, and welcome the millions of customers who will turn out to shop small. small business saturday. visit shopsmall.com and get ready. because your day is coming.

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imagine a world where up is down, an alternate reality where logic is an enemy and truth is a menace. a world that is like the twilight zone. if you watch fox and listen to rush and read red state.com, you live in a bubble where reality rarely seeps in and obama is always one shadow away from the scandal that will end his presidency in disgrace. but there's a civil war under way in the alternate reality right now, the truth is trying to invade. there are strong forces working to repel it. there are people i'll call realists who recognize that change must occur or more electoral thumpings will happen. david frum is a leader of this group warning that the right wing media cabal can no longer be allowed to lead the party. >> the conservative followership has been fleeced, exploited and lived to by the conservative entertainment complex. >> bill crystal showed his maturity by saying compromise is valuable. >> it won't kill the country if we raise taxes a little bit on

millionaires. it really won't i don't think. i don't really understand why respects don't take obama's offer. >> and seen sean hannity has gotten involved. >> i think you control the border first. you create a pathway for those people that are here. you don't say you got to go home. and that is a position that i've evolved on. >> calling hannity a realist stretches the meaning of the word, i know, but note how simple he thinks these people are, border, amnesty, done. no. as ross douthat wrote in "the times" the idea of amnesty as latino winning electoral silver bullet is a fantasy. the deeper layer is the concept of benevolent government intervention to improve people's lives is satanic in the bubble. they call it wanting free stuff. >> you're never going to outbid them in giving away free stuff. they will always do one more thing.

the bidding war, we're going to lose that. >> this is an offensive way of looking at the social safety net and reduces certain elements in society to virtual children who expect toys to rain from the sky just because mommy loves them. this is just another way of articulating what romney said in his 47% speech which reminds me that many of the idealists say the problem was romney. >> the president was committed -- elected on the basis he was not romney and that romney was a poopy head and you should vote against romney. >> poopy head. that means they don't need to modify their principles, they just need a better messenger. for idealists 2010 becomes the blankie that let's them sleep at night. they rocked the house in 2010. so stay the course and things will just somehow work out. they avoid dealing with explosive growth in latino community by saying dems also have a demographics problem with white voters, but one of those groups is growing dynamically and the other is not. to these people marco rubio

looks like jesus, a man who will ride in and deliver latino votes and all will be fine. pay no attention to rubio being cuban and hispanics not being a monolith. even el rushbo understands the differences between latinos. >> the reason that the cubans are no the that popular of the hispanic divisions you've talked about -- it's a race thing. >> yes, it is. >> it's a rag thing. they're not as dark and they're oriented toward work? >> wow. as david frum tweeted, the first step to republican recovery, insult fewer people. sounds like a fine place to start. or better yet, continue taking a trip to a world where facts matter, a world out of the twilight zone. that does it for "the cycle." michael eric dyson is in the chair for martin today. how are you? >> i feel like lebron. i'm going to keep pushing. >> keep winning. >> you know what? kobe bryant does